Portland General Electric — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third quarter 2026 GAAP net income of $119 million ($1.00 diluted EPS), compared to $103 million ($0.94 diluted EPS) in the same period in 2025.
• Reported third quarter 2026 non-GAAP net income of $125 million ($1.06 diluted EPS), compared to $110 million ($1.00 diluted EPS) in the same period in 2025.
• Total revenues for the quarter were $971 million, up from $952 million in the prior year period.
• Year-to-date (nine months ended September 30) GAAP net income was $232 million, compared to $265 million in 2025.
• Year-to-date total revenues were $2,664 million, down from $2,687 million in 2025.
• Operating expenses for the quarter were $784 million, compared to $778 million in the prior year.
• Cash from operations guidance for 2026 is set between $950 million and $1,150 million.
• Capital expenditures for 2026 are projected at $1,565 million.
• Long-term debt as of September 30, 2026, was $5,010 million, up from $4,662 million as of December 31, 2025.

Guidance and Future Outlook:

• Revised full-year 2026 adjusted earnings guidance to $3.18 to $3.28 per diluted share, citing the impact of unusually mild weather in the third quarter.
• Long-term guidance remains intact.
• Guidance assumptions include energy deliveries increasing 1.0% to 2.0% (weather-adjusted), operating and maintenance expenses between $810 million and $830 million, and depreciation and amortization between $570 million and $590 million.
• Expected effective tax rate for 2026 is between 15% and 20%.
• Management anticipates normal temperatures for November and December 2026.

Business Segments and Product Lines:

• Industrial customer demand grew 9% year-over-year, driven by high-tech and data center customers.
• Residential and small-commercial demand decreased due to cooler summer weather.
• Launched participation in the Extended Day-Ahead Market (EDAM) on October 1st, expected to generate approximately $14 million in estimated customer savings in 2027.
• Filed 2027 general rate case with the OPUC in August, proposing an overall price increase of approximately 4.8% (residential increase of 3.9%), with new rates potentially effective July 1, 2027.
• Filed 2026 Clean Energy Plan and Integrated Resource Plan with the OPUC in October.
• Signed build-transfer agreements for two new solar and battery projects: Biglow (200 MW solar, 250 MW battery, ~$900 million investment) and Salmonfly (199 MW solar, 199 MW battery, ~$853 million investment).

Market and Competitive Landscape:

• The third quarter was the mildest in a decade, creating a $0.15 year-over-year EPS headwind for the quarter and an estimated $0.20 EPS headwind year-to-date.
• Industrial load growth continues to be a key driver, with direct access industrial customers growing 1.3% in the quarter and 4.1% year-to-date.
• Retail load requirement for the nine months ended September 30, 2026, was 15,962 GWh, up from 15,610 GWh in 2025.
• Wholesale sales decreased 26.1% year-to-date compared to 2025.

Risks and Challenges:

• Unfavorable weather conditions continue to impact customer demand and earnings, with mild temperatures reducing residential and small-commercial load.
• Regulatory risks include the timing and outcome of the 2027 general rate case and the holding company structure implementation.
• Forward-looking statements note risks related to wildfire, public safety, severe weather, electric-system operations, regulatory actions, acquisition integration, capital investment delays, and macroeconomic factors.

Management Commentary and Tone:

• Maria Pope, President and CEO, stated the company continues to execute on strategic priorities, highlighting 9% weather-adjusted industrial demand growth.
• Management noted that the October 1st EDAM go-live is reducing power costs and energy market volatility.
• The tone reflects confidence in cost management initiatives, regulatory recovery, and strong industrial load growth, despite the weather headwinds.

Other Key Points:

• The Board of Directors declared a quarterly common stock dividend of 55.125 cents per share, payable on or before January 15, 2027, to shareholders of record on December 22, 2026.
• Following an OPUC order on September 25th, the company filed a request for clarification and changes to two conditions regarding a proposed corporate structure intended to enhance financial flexibility.
• The company supports $78 million in customer rate credits and $5 million in other community commitments.
• The Salmonfly project was executed outside the 2025 RFP and remains subject to an OPUC waiver process for competitive bidding rules.
• The company serves nearly 960,000 customers across an area of approximately 2 million Oregonians.